Post Earnings Coverage as Cooper Cos Earnings Grows 97 Percent

LONDON, UK / ACCESSWIRE / September 7, 2016 / Active Wall St. announces its post-earnings coverage on The Cooper Companies Inc. (NYSE: COO). The company released its financial results for the fiscal third quarter 2016 (Q3 FY16) on September 1, 2016. The Contact-lens company updated its financial guidance after stellar earnings results. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on COO; touching on stocks like Valeant Pharmaceuticals International, Inc. (NYSE: VRX), Novartis AG (NYSE: NVS), and Johnson & Johnson (NYSE: JNJ). Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=COO

http://www.activewallst.com/registration-3/?symbol=VRX

Earnings Reviewed

For the quarter ended on July 31, 2016, Cooper Cos. reported net income of $87.9 million, or $1.79 per share, up 97% compared to net income of $44.95 million, or $0.91 per share. Excluding certain items, profit rose to $2.30 per share, beating consensus estimate of $4.28 per share. Revenues increased 11.5% on a y-o-y basis to $514.7 million, coming ahead of analysts’ expectation of $511.4 million.

Robert S. Weiss, Cooper Cos.’ president and chief executive officer said:

“I am pleased to report another solid quarter for the company, including record revenues at both our business units. We are very encouraged by our business trends and believe we are well positioned to continue producing strong results.”

Segment Results

During Q3 FY16, revenue from the company’s CooperVision (CVI) rose 6% to $409.9 from Q3 FY15. Within the CVI segment, Toric, which constitutes 31% of total revenue, grew 10% on y-o-y basis to $126.1 million. Single-use sphere lenses, which accounts for 25% of CVI revenues, rose 11% to $104.3 million. The Multifocal unit grew 4% to $44.3 million, while Non-single-use sphere lenses remained flat from the year-ago quarter to $135.2 million.

Cooper Cos. reported that its CVI segment has steadily increased its market share in the Soft Contact lens market from 17.8% in calendar year 2012 to 22.9% at the end of the Q2 CY16.

The company is comfortably ahead of Bausch & Lomb, which is owned by Valeant, and marginally below Alcon, which is a subsidiary of Novartis AG.

Cooper Cos. holds a 24% market share and behind Johnson & Johnson, the market leader in soft contact lens with 40% market share.

For Q3 FY16, the company’s CooperSurgical (CSI) segment, the fertility category, rose 108% on y-o-y basis totaling $52.0 million. Furthermore, the office and surgical products category, in the CSI unit, grew 3% to $52.8 million.

Margins Improve

For Q3 FY16, Cooper’s reported gross margin of 62% compared to 59% in Q3 FY15. On a non-GAAP basis, gross margin was 64% versus 62% last year. Gross margin was positively impacted primarily by product mix and favorable currency which was partially offset by lower margin acquisitions at CooperSurgical.

During Q3 FY16, the company’s operating margin improved to 20% compared to 11% in the year ago period. On a non-GAAP basis, operating margin was 26% versus 23% last year. The increase was the result of improved gross margins and leveraging operating expenses.

CFO Retire

In a separate press release on the same date as its earnings release, Cooper Cos. announced that its Chief Financial Officer, Gregory W. Matz, who also serves as the company’s chief risk officer, plans to retire on October, 31, 2016 (the end of Cooper Cos’ business year). He will keep an advisory role through March, 2017. Albert G. White would succeed Mr. Matz as the new CFO from November 1, 2016. Mr. White will assume this role in addition to his current responsibilities as executive vice president and chief strategy officer of Cooper Cos.

Guidance

Cooper Cos. raised its projection for FY16. The company is now expecting adjusted earnings in the range of $8.32 per share to $8.47 per share, from the previous guidance of earnings of $8.20 per share to $8.50 per share and total revenues in the range of $1.94 billion to $1.95 billion as compared with the prior guidance of $1.93 billion to $1.96 billion. For Q4 FY16, adjusted earnings per share are projected in the band of $2.15 per share to $2.30 per share.

Stock Performance

On September 6, 2016, Cooper Companies’ stock price closed at $188.30, 1.28% higher from its previous closing price of $185.92. A total of 611.48 thousand shares were exchanged during the trading session, which was higher than its 3 months average volume of 353.65 thousand shares. The company’s stock price has gained 2.97% in the past one month and 40.37% on a YTD basis. The stock is trading at a PE ratio of 44.56.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 444881